1. PRINCIPAL AND AGENT; RATIFICATION OF ACT OF AGENT; RIGHTS INCIDENT TO OWNERSHIP. — Where one of two individuals who had been associated in certain real estate deals, owing a sum of money to his associate, invested it in the shares of a new company promoted by himself, and this action was ratified by the associate, to whom the shares were accordingly issued, no legal or equitable rights, other than those ordinarily incident to ownership, can be deduced from the transaction in favor of the owner thus acquiring such shares.

2. ID.; AGENT’S LIABILITY FOR INTEREST ON MONEY OF HIS CONSTITUENT. — Under article 1724 of the Civil Code and article 264 of the Code of Commerce, an agent is liable for interest on funds belonging to his principal (constituent) which have been applied by the agent to unauthorized uses.

3. EQUITY; TRUSTS; FOLLOWING TRUST FUNDS; WHEN CASE GOVERNED BY ORDINARY RULE OF CIVIL LIABILITY. — The doctrine developed in the courts of England and the United States relative to the pursuing of trust funds is conversant with rights deducible from the application, by a person in a trust relation with another, of specific property belonging to such other person to some unauthorized purpose. The fact that one of two co